Colliers International completes complex sale of midtown office space to Canadian investor

Popular live-work-play lifestyle of midtown Phoenix attracts buyers

Phoenix, August 9, 2018 – Colliers International in Greater Phoenix announced the sale of a portion of the office building at 3033 N. Central Avenue in Phoenix and its adjacent parking garage to a Canadian investor as its first Midtown Phoenix acquisition. The buyer was attracted to the property because of its proximity within the increasingly popular “live-work-play” Central Phoenix corridor. 

“This complex transaction involved the sale of a portion of a nine-story mid-rise tower on Central Avenue,” said Mindy Korth, executive vice president with Colliers International in Greater Phoenix. “Years ago, the tower had been converted to office condos and a real estate cycle downturn halted the unit sales to owner/occupants. This left the tower with a portion of its square footage still landlord-controlled for multi-tenant leasing. That status provided a unique opportunity for the buyer to gain a significant position on Central Avenue with a cost-effective investment. The transaction presented a high level of complexity because the asset is involved in a condominium regime, owners’ association agreements and sharing of infrastructure services with the adjacent high-rise building.”

Korth, Charles Miscio and Kirk Kuller of Colliers in Greater Phoenix represented the seller in the transaction. Jim Bayless, Kate Morris and Vince Femiano of CBRE represented the buyer. Phoenix Central Park Medical LP purchased the property from an entity represented by The Krausz Companies, a San Francisco-based real estate company. 

The post-modern design building was originally built in 1960, as a part of the Class A Prudential Plaza that also includes a 25-story high-rise. It was extensively remodeled in 2005, when the condominium regime was established. The property is located on 2.68 acres of land directly across from Park Central Mall in the heart of Midtown.

The sale included 80,230 square feet of multi-tenant office space, which was 30 percent leased at the time of the sale. The overall building area totals approximately 134,164 square feet. The buyer came to the transaction with a sizable prospective tenant that is poised to lease approximately 38,000 square feet of the tower’s vacant space.

“This asset offered tremendous upside at a fraction of replacement cost,” said Korth. “Central Phoenix is attracting a wide range of employers and new residents and has become a 24/7 community. The Midtown submarket is poised for dynamic recovery and the buyer will benefit from the timing of their purchase.”

The Krausz Companies specialize in the acquisition, development and management of high quality, well-located retail, office, industrial and mixed-use properties throughout the United States.

About Colliers International Group Inc.
Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is top tier global real estate services and investment management company operating in 69 countries with a workforce of more than 13,000 professionals. Colliers is the fastest-growing publicly listed global real estate services and investment management company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide, and through its investment management services platform, has more than $20 billion of assets under management from the world’s most respected institutional real estate investors.
Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice to accelerate the success of its clients. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers is ranked the number one property manager in the world by Commercial Property Executive for two years in a row.
Colliers is led by an experienced leadership team with significant equity ownership and a proven record of delivering more than 20% annualized returns for shareholders, over more than 20 years.
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Colliers International in Greater Phoenix has served clients locally and globally for more than 35 years.